Union Pacific 2005 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2005 Union Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Chemicals – Price increases, fuel surcharges, and higher
shipments of potash from Canada to Portland via the
Eastport, Idaho, gateway for overseas export drove
revenue growth in 2005. Declines in liquid and dry
chemicals, plastics, and petroleum shipments, in part
due to the business interruptions caused by Hurricane
Rita, reduced volume. In addition, liquid and dry
chemical shipments and plastic shipments were lower
due to a weak export market, plant closures for
maintenance, and the impact of an agreement with the
BNSF for access to certain facilities in the Bayport,
Texas area. ARC improved for the year due to price
increases and fuel surcharges.
In 2004, liquid and dry chemical shipments, led by
intermediate chemicals and caustic soda, rose due to
overall economic activity. Shipments of soda ash, or
sodium carbonate, which is an important raw material
for manufacturing, increased due to strong demand in
domestic and export markets. An improved economy
and a stronger export market led to volume and
revenue growth for plastics. Overall, ARC improved
due to longer average lengths of haul, increased
shipments of high-ARC soda ash, and the positive
effects of price increases and fuel surcharges.
Energy – Revenue growth in 2005 reflects higher
prices, fuel surcharges, and index-based contract
escalators. Although volume grew in the first quarter,
carloads for the year were flat as a result of the
maintenance and restoration work on the SPRB Joint
Line during the second, third, and fourth quarters, the
impact of Hurricane Rita, the Kansas washouts, and
temporary outages at mines in Colorado and Utah
during the fourth quarter. ARC was higher due to
price increases, higher fuel surcharges, and index-
based contract escalators.
In 2004, overall volume dropped slightly
compared to record levels set in 2003; however, coal
originating in Colorado increased 9% due to strong
demand for this high-BTU coal. Price increases and
fuel surcharges drove ARC improvements, which were
offset by the impact of additional shorter lengths of
haul shipments.
23